FERNDALE >> We’re doing what we can: That’s the message a Ferndale Public Schools board member delivered to a group of employees protesting possible wage cuts Monday, some of which were approved that night.

About 150 people braved the cold weather and picketed outside the Harding Administration Center on Burdette Street Monday night, as district officials grapple with how to fill a $2 million budget shortfall. The district’s projected student enrollment fell short about 350 pupils this year, opening the possibility of mid-year layoffs or pay cuts some say could be as high as 8 percent.

Jason Gillespie, bargaining chairperson for the Ferndale Education Association, said he was “fired up” Monday to see the level of support from the district’s various unions. A dozen motorists passing by honked their horns in support during the hour-long picketing.

“It really shows our collective voice,” Gillespie said. The district has about 300 unionized employees, he said, represented by the Michigan Education Association, the Ferndale Association of Educational Secretaries, the United Auto Workers and the American Federation of State, County and Municipal Employees.

Advertisement

But some of those pay cuts were approved Monday night. Inside the administration building, the Board of Education unanimously approved a new agreement with the United Auto Workers Local 889, shaking loose more than $73,000 in immediate budget relief.

The 48 members represented by the union accepted a wage reduction of 7.38 percent until June 30, said Superintendent Gary Meier.

On July 1, nearly 3.4 percent of that will be restored, with step increases implemented to eventually return those employees to their previous rate, Meier said, with additional increases annually until 2017.

Tom Brenner, president of the local UAW union, said in a statement: “The mutual respect (Meier and I) have for each other helps us to resolve difficult situations and rise out of them to best serve the students in the district.”

Brenner continued, “It is a sacrifice for my members for the remainder of this school year, but we’re helping the district with their financial crisis, and moving forward for a better district and a better union. This sacrifice now will definitely benefit us over the course of the contract.”

Meier said language was also included in the contract to trigger wage increases if enrollment or the state foundation allowance increases. Additional compensation will be dispersed if the district wins a pending court appeal regarding foundation per-pupil allowances, she said.

“I have the highest regard for the employees of our school district,” Meier said, adding“…I appreciate the courage of the UAW to work with the district to invest in the future of the district, and that’s the approach we’re really taking with all of our employee groups.”

Outside Monday night, Gillespie and other employees placed the majority of blame for the school’s budget woes on state lawmakers. Cuts in recent years to the per-pupil foundation allowance rolled Ferndale schools’ level back $400 to $7,711 per pupil.

“It’s too real to happen and just stand by and wait,” said Jesse Ynclan, a high school social studies teacher.

Ynclan, 58, has been employed by the district for six years.

“I like Ferndale, I like the community,” he said. So, two years ago, he sold his house and moved to the city.

Ynclan said he understands school officials have to balance the district’s budget through the limited means afforded to them.

“We shouldn’t even be out here,” Ynclan said. “We work well with the administration.”

“Our real battle is with Lansing.”

The district faced a nearly $4.7 million deficit last year after an unexpected shortfall in student count. Officials compensated by eliminating positions, enacting cuts to district goods, services and supplies, and used $1.5 million from the district’s fund balance to cover the remaining deficit.

The district’s current fund balance is about $3 million. Auditors typically suggest maintaining a fund balance at 10 to 15 percent of its roughly $39 million annual budget, officials told The Oakland Press.

An informational sheet passed out by Ferndale Education Association members Monday said the union believes the district should cover the remaining shortfall using the surplus.

“Many districts are performing well without having $3 million in their fund equity,” the handout said. The union also suggests the district reconsiders open-enrollment policies and possibly implement a fee for students to participate in some school programs to generate additional revenue.

The budget amendment talks come at a time the state legislature is projecting upwards of $1 billion in additional revenue over the next three years. Lawmakers have said they’re interested in reducing Michigan’s income tax with the surplus.

Fred George, a special eduction teacher with the district for over two decades, said the issue rests with officials and “poor decision making.”

“We give our lives for kids,” said George, who lives in Farmington with his wife and two children. “...You’re holding our heads under water, and you’re still asking us to breathe.”